Bull’s Eye Report: Cabot Oil & Gas (COG)

by Dave Moenning | September 17, 2013 3:04 pm

At StateoftheMarkets.com[1], we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T. Stop Loss
Cabot Oil & Gas COG Oil and Natural Gas 8.3 +51.18% $36.75

Why We Like The Stock:

Cabot Oil & Gas (COG[2]) is our most compelling buy today due to the fact that it is a top-rated stock (in terms of earnings strength and company/industry performance) with a wonderful technical set-up. Oil and gas stocks have been mostly good this year, ranging from decent performers like Williams Companies (WMB[3]) and Atlas Resource Partners (ARP[4]) to great performers like EQT Corp. (EQT[5]), EOG Resources (EOG[6]), and COG. Since June of 2012, COG has been sterling. The stock has maintained a long-term up-trend while only pulling back on a few occasions in a modest manner. While the stock doesn’t have the high short-term upside potential like some biotech or technology stocks, we like COG at current prices after a modest pullback for an intermediate-term hold above $36.75. If this year’s price action gives us any hints, we should be seeing a quick run back to $40 over the next few weeks.

We Would Be Buyers:

At the current price (~$38.18).

Company Profile:

Cabot Oil & Gas Corporation is an independent oil and gas company engaged in the development, exploitation and exploration of oil and gas properties. The company’s exploration, development and production operations are primarily concentrated in three plays: the Marcellus Shale in Pennsylvania, the Eagle Ford in south Texas and the Marmaton oil play in Oklahoma. The company also has non-core operations in various other unconventional and conventional plays throughout the continental United States. The company’s assets are concentrated in areas with hydrocarbon resources, which are conducive to multi-well, repeatable drilling programs.

Stock Rating: 8.3

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Cabot Oil & Gas – Last Three Months

cog 1 Bull's Eye Report: Cabot Oil & Gas (COG)[7]

Cabot Oil & Gas – Last 12 Months

cog 2 Bull's Eye Report: Cabot Oil & Gas (COG)[8]

Cabot Oil & Gas – Last Five Years

cog 3 Bull's Eye Report: Cabot Oil & Gas (COG)[9]
Looking to trade the Bull’s Eye stock picks? Click here to download our free Special Report, “How We Identify Our “Bull’s Eye” Picks & How You Can Profit Trading Them”[10]

At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

Endnotes:
  1. StateoftheMarkets.com: http://www.StateoftheMarkets.com
  2. COG: http://studio-5.financialcontent.com/investplace/quote?Symbol=COG
  3. WMB: http://studio-5.financialcontent.com/investplace/quote?Symbol=WMB
  4. ARP: http://studio-5.financialcontent.com/investplace/quote?Symbol=ARP
  5. EQT: http://studio-5.financialcontent.com/investplace/quote?Symbol=EQT
  6. EOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=EOG
  7. [Image]: http://investorplace.com/wp-content/uploads/2013/09/cog-1.png
  8. [Image]: http://investorplace.com/wp-content/uploads/2013/09/cog-2.png
  9. [Image]: http://investorplace.com/wp-content/uploads/2013/09/cog-3.png
  10. Looking to trade the Bull’s Eye stock picks? Click here to download our free Special Report, “How We Identify Our “Bull’s Eye” Picks & How You Can Profit Trading Them”: http://stateofthemarkets.com/wp-content/uploads/2013/08/Top5SpecialReport.pdf

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